India is world’s third best performing market in 2009
The Financial Express, January 1, 2010, Page 4
PK Dey, Mumbai
India was the third best performing market in the world in 2009 just behind Russia and Brazil.
While the BSE Sensex returned 81%, the Brazilian market gave investors a slightly higher return of 82.7% and the Russian market offered investors a handsome return of 111.6%. During 2009, Indian markets were buoyant on FII buying and the rally across the global markets. Metal, oil & gas, power and capital goods stocks led the rally throughout 2009. The broad market as measured by the movement of BSE Sensex, gained by 81% from December 31,2008 to December 31, 2009.This return was higher than the eleven major world indices such as Nasdaq Composite Index, S&P 500 Index, Dow Jones Industrial Average and Nikkei 225.
Mehul Dedhia, associate vice-president at Sharekhan said, “There are three major reasons for such a surge in the markets. Firstly, the condition of global markets has improved and we are also witnessing huge inflows from foreign funds. Apart from that in the last two quarters, we also saw strong earnings growth. The major game changer was the general elections in which Congress-led UPA government came with the clean majority.”
The Dow Jones Industrial Average ended higher by 1772.11 points (20.2%) at 10548.50 on December 30, 2009. Recently, the US Federal Reserve plans to offer term deposits to banks as part of its “ exit strategy” from the exceptionally loose monetary policy used to fight recession. Better-than-expected report on Midwest manufacturing helped sentiment. Nasdaq composite index ended higher by 714.25 points at 2291.28. S&P 500 also ended higher by 223.17 points at 1126.42 on Decemeber 30, 2009. The Nikkei 225 of Japan appreciated by 19% during 2009, buoyed by trading firms such as Mitsui & Co after gains in oil & metals prices, while automakers also edged up. Shanghai SE Composite Index gave 79.2% return in 2009 which is next to India despite higher GDP growth. According to Bloomberge UTV Stock Market News, Beijing will stick to its loose monetary stance, but will try to be more flexible in implementing its policies, People’s Bank of China Governor Zhou Xiaochuan said recently.
From the above analysis, one thing is clear that emerging market economies are outpacing developed countries in global economic recovery and may continue to do so for some time.
D R Dogra, deputy managing director,CARE, said, “ The effect of economic slowdown on India was significantly lower as compared to other markets.”
The Financial Express, January 1, 2010, Page 4
PK Dey, Mumbai
India was the third best performing market in the world in 2009 just behind Russia and Brazil.
While the BSE Sensex returned 81%, the Brazilian market gave investors a slightly higher return of 82.7% and the Russian market offered investors a handsome return of 111.6%. During 2009, Indian markets were buoyant on FII buying and the rally across the global markets. Metal, oil & gas, power and capital goods stocks led the rally throughout 2009. The broad market as measured by the movement of BSE Sensex, gained by 81% from December 31,2008 to December 31, 2009.This return was higher than the eleven major world indices such as Nasdaq Composite Index, S&P 500 Index, Dow Jones Industrial Average and Nikkei 225.
Mehul Dedhia, associate vice-president at Sharekhan said, “There are three major reasons for such a surge in the markets. Firstly, the condition of global markets has improved and we are also witnessing huge inflows from foreign funds. Apart from that in the last two quarters, we also saw strong earnings growth. The major game changer was the general elections in which Congress-led UPA government came with the clean majority.”
The Dow Jones Industrial Average ended higher by 1772.11 points (20.2%) at 10548.50 on December 30, 2009. Recently, the US Federal Reserve plans to offer term deposits to banks as part of its “ exit strategy” from the exceptionally loose monetary policy used to fight recession. Better-than-expected report on Midwest manufacturing helped sentiment. Nasdaq composite index ended higher by 714.25 points at 2291.28. S&P 500 also ended higher by 223.17 points at 1126.42 on Decemeber 30, 2009. The Nikkei 225 of Japan appreciated by 19% during 2009, buoyed by trading firms such as Mitsui & Co after gains in oil & metals prices, while automakers also edged up. Shanghai SE Composite Index gave 79.2% return in 2009 which is next to India despite higher GDP growth. According to Bloomberge UTV Stock Market News, Beijing will stick to its loose monetary stance, but will try to be more flexible in implementing its policies, People’s Bank of China Governor Zhou Xiaochuan said recently.
From the above analysis, one thing is clear that emerging market economies are outpacing developed countries in global economic recovery and may continue to do so for some time.
D R Dogra, deputy managing director,CARE, said, “ The effect of economic slowdown on India was significantly lower as compared to other markets.”
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